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Northamerican Energy Announces Acquisition of Permian Basin
Feb 5, 2007 8:00:00 AM
2007 PrimeNewswire, Inc.
HOUSTON, Feb. 5, 2007 (PRIME NEWSWIRE) -- Northamerican Energy Group Corporation (Pink Sheets:NNYR) announced today that it has reached an agreement in principle with Penergy, of Midland, Texas, for the acquisition of five Permian Basin leases.
The five leases are located in the West Texas Counties of Ector, Martin and Howard and include existing wells that were shut in, and thereafter purchased by Penergy, in the late 1990's when oil prices bottomed out.
"The wells on these leases are set to produce oil out of various formations ranging from 1700' to 9000' and can easily be refurbished, and reworked, at nominal cost, to bring them back on line," stated Jon Ginder, Northamerican Energy's Chairman and CEO.
"These leases are part of the divestitures of leases that Northamerican Energy has been discussing with Penergy since late last year and we will continue to consider other possibilities with Penergy that fit in with our overall program to expand our operations, and production, both in the Permian Basin, and in other locations," continued Jon Ginder.
Northamerican Energy Group Corporation has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves. The Company concentrates on acquiring prospects, which largely are, and have, proven oil and gas production, which have been operating for many, many years. By acquiring working interests in proven low-risk fields the Company minimizes the risk by not "wildcatting or drilling dry-holes," and incurring any expense of building major infrastructure to get the product to market. Finally, the Company's low-cost operations and low overhead structure allows the Company to maximize the income and revenue from each production lease.
Safe Harbor Provisions
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
CONTACT: Northamerican Energy Group Corporation
Jon Ginder, CEO